32
Refugees Refugees (residence) – Palestinian refugees may return to the Palestinian state, remain in their host countries or emigrate to a different, consenting state. Refugees (compensation) – an international mechanism will manage the financing of treatment and compensation of the refugees issue. 53

33
The main issues and parameters of an arrangement Two states, a national home for the Jewish people and a national home for the Palestinian people 67 borders as a basis and territorial exchange on a 1:1 ratio Division of east Jerusalem between the two capitals Solution to the refugee problem not by returning to Israel The Palestinian state will be demilitarized & Cessation of terrorism and violence

34
How may the agreement be implemented in a manner conditioned by security? 40

35
First phase : Negotiations over the final border Building restriction No evacuation of settlements Unauthorized outposts will be evacuated Israel will transfer C areas to the PA The transition from the first phase to the second will be conditioned by the PA attaining full effective control over the territory transferred to its jurisdiction. 41

36
Second phase Negotiations at the end of which a comprehensive agreement will be signed over all remaining issues A limited number of settlements and settlers will be evacuated. At the same time, Arab states will extend normalization gestures to Israel. After implementation of the first two phases, Israel will hold a security strip in the Jordan Valley and the Judea Desert, will control international passages, will hold east Jerusalem without the Arab marginal neighborhoods, and will hold the major settlement blocks. In the remaining area, Israel will evacuate all military bases and settlements and will transfer all authority to the PA. Deployment of an international force will begin. Both sides will approve the agreement. A conference of donor countries will be convened on the implementation of the agreement. The transition to implementing the final phase will only be done after reaching a full agreement. 44

37
Third phase : The UN will adopt a resolution approving the agreement as the only document that binds the parties, and which supersedes all prior UN resolutions on the Israeli-Palestinian conflict. Israel will implement the third phase by transferring territory to Palestinian jurisdiction. No Israeli territory will be transferred to Gaza in the framework of territorial exchange for Jewish settlement blocks, and the corridor connecting the West Bank to Gaza will not be opened until the Palestinian state can demonstrate effective control in the Gaza Strip as well. The parties will implement the agreement according to the time table to be included therein. Israel will sign a normalization agreement with the Arab League, and the Arab states and Israel will begin to implement it subject to the political process with Syria and Lebanon. 46